At lunch on Tuesday the S&P/ASX 200 index has followed the lead of U.S. markets and pushed higher. At the time of writing the benchmark index is up 0.15% to 6,698.4 points.
Here’s what has been happening on the market today:
Bank shares are lower
Australia and New Zealand Banking Group (ASX: ANZ), Commonwealth Bank of Australia (ASX: CBA), and the rest of the big four banks are trading lower today ahead of the Reserve Bank’s meeting this afternoon. The latest cash rate futures continue to point to a 78% probability of a rate cut to a record low of 0.75%.
Suncorp sells smash repair business
This morning Suncorp (ASX: SUN) announced an agreement to sell its smash repair business to AMA Group Ltd (ASX: AMA). The Capital S.M.A.R.T business will be acquired by AMA for an enterprise value of $420 million, with Suncorp retaining a 10% stake. The insurance and banking giant expects to record an after-tax profit on the sale in the range of $275 million to $295 million.
Gold miners sink lower
A number of Australian gold miners such as Resolute Mining Limited (ASX: RSG) and Saracen Mineral Holdings Limited (ASX: SAR) have sunk lower today after the gold price tumbled overnight. According to CNBC, the spot gold price dropped 1.8% to US$1,479.10 an ounce after the U.S. dollar strengthened. The S&P/ASX All Ords Gold index is down 2.8% today.
Best and worst performers
The best performer on the ASX 200 index for a second day in a row is the Nufarm Limited (ASX: NUF) share price with a gain of almost 9%. This morning analysts at Morgan Stanley retained their overweight rating and lifted the price target on the agricultural chemicals company’s shares to $7.20 following its results and asset sale. The worst performer today has been the Resolute Mining share price with a decline of almost 3.5%.